Liquidating "billion-dollar" estates through the Enforcement Support Center: A roadmap for converting stagnant assets into liquidity
The Kingdom's vast real estate estates represent a tremendous store of wealth, yet they often become "frozen assets," suffering from investment stagnation that can last for years, even decades, due to heir disputes or complex ownership structures. Previously, liquidating these estates through the courts was a lengthy and arduous process that depleted the asset's value and wasted valuable time. However, the landscape has changed dramatically with the activation of the "Support and Liquidation Center" (Enfaz), which has brought about a qualitative shift from "purely judicial liquidation" to "liquidation based on project management principles." As a certified liquidator who has managed the liquidation of more than fifteen major estates, I understand that success in this area depends not only on the issuance of a liquidation order but also on the liquidator's professionalism in managing the relationship between the judiciary (which provides the legal cover) and the private sector (which possesses the marketing and sales tools).
The liquidator: an engineer, not just a salesman.
Some believe the liquidator's role is limited to putting the property up for auction, but this is a gross oversimplification. Successful liquidation is a complex process that begins with a thorough technical and legal assessment. Many older properties suffer from deed problems, regulatory overruns, encroachments, or long-term leases at undervalued rates. The role of a professional liquidator is to "purify" the property; that is, to address all legal and technical issues that could reduce its value and make it ready for immediate transfer. Offering a legally sound property significantly increases its market value compared to offering one burdened with problems.
Speed and Value Equation
The Enforcement Center provides an ideal environment that ensures transparency and fairness, but the liquidator still retains creative freedom in the "sale strategy." Is a direct sale the best option for this business asset? Or is an electronic auction more suitable for the undeveloped land? Or perhaps a "hybrid" in-person auction? Making the right decision regarding the timing of the offering and the marketing mechanism is the difference between selling the asset at the "valuation price" or selling it at the "opportunity price," which achieves the highest return for the heirs.
Governance and the preservation of rights
Dealing with estates involving dozens of heirs, minors, and bequests requires a high level of "financial governance." The liquidator is the custodian of these funds, and their responsibility does not end with the sale, but extends to ensuring the settlement of debts, executing wills, distributing shares with meticulous precision according to Sharia principles, and closing the case both financially and legally before the court.
Summary
Converting real estate into cash (liquidity) is the goal, but "value maximization" is the ultimate aim. The modern liquidation system in the Kingdom, led by "Enfaz" and the expertise of accredited liquidators, has become capable of deciphering the most complex estates and transforming them from forgotten files in the courts into liquid cash that injects new life into the a
